Swiss Insured Brazil Power successfully wraps note consent solicitation

Chicago, July 2 – Swiss Insured Brazil Power Finance Sarl announced that it has received the requisite amount of consents in its consent solicitation for its 9.85% senior secured notes due 2032 (ISINs: L8915MAA3, 870880AA9) guaranteed by Celse – Centrais Eletricas de Sergipe SA, according to a press release.

The company was soliciting consents to make space for a working capital facility in the amount of $175 million.

As previously reported, Celse said it needs a working facility to purchase liquefied natural gas due to an extreme lack of rainfall, which has resulted in unanticipated and persistent dispatch of Celse’s combined cycle power plant.

The company needed to amend the terms and conditions to modify the definitions of “permitted indebtedness” and “permitted liens,” to amend the accounts agreement to allow Celse to open a segregated escrow account where variable revenues will be transferred and to release the security over the variable revenues received by Celse and make any other modifications necessary so that Celse can incur the working capital facility.

A consent payment will be paid to consenting noteholders of R$2.50 per R$1,000 note within three days after all conditions to the consent solicitation have been satisfied to holders who delivered consents before the 5 p.m. ET deadline on July 1. The consent payment will be payable in U.S. dollars based on the spot rate at the expiration time of 0.1981 as shown on the Bloomberg “BRLUSD Curncy” screen.

Goldman Sachs & Co. LLC is the solicitation agent (GS-LM-NYC@gs.com, 800 828-3182, 212 357-1452).

D.F. King & Co., Inc is the information and tender agent for the offer (866 751-6313, 212 269-5550, celse@dfking.com).

Swiss Insured Brazil Power is a Luxemburg special purpose vehicle issuing debt for Celse, a Brazilian company engaging in power generation from natural gas thermal plants.

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